Termination for Cause Clause
Allows a party to end the contract when the other materially breaches, often after a chance to cure.
Qué es
Termination for cause lets the innocent party end the agreement when the other commits a material breach, becomes insolvent, or repeatedly defaults. Under Dutch law this typically takes the form of ontbinding, available for any non-trivial failure to perform under BW 6:265.
Por qué importa
It is the contract's safety valve against a defaulting counterparty. Clear cure periods and a precise definition of "material breach" prevent disputes about whether termination was justified; wrongful termination can itself be a breach.
Cómo aplicarla
- Define material breach and list automatic triggers such as insolvency.
- Provide a cure period and require a notice of default (ingebrekestelling) where needed.
- State the effect of termination and which obligations survive.
- Address restitution and settlement of work performed up to termination.
Ejemplo de redacción
Either party may terminate this Agreement with immediate effect if the other commits a material breach that, being curable, is not cured within thirty (30) days of written notice.
Consejos de negociación
- • Negotiate which breaches are "incurable" and allow immediate termination.
- • Consider contractually narrowing the broad BW 6:265 right for minor failures.
Errores frecuentes
- • Terminating without the required notice of default, making the termination wrongful.
- • Leaving "material breach" undefined, so any minor default is argued to justify exit.
Referencias legales
- BW 6:265 Dissolution for breach (ontbinding) Derecho neerlandés
- BW 6:74 Damages for non-performance Derecho neerlandés
Salvo indicación en contrario, las referencias remiten al derecho neerlandés (Burgerlijk Wetboek, el Código Civil neerlandés); los instrumentos de la UE como el RGPD se aplican en toda la UE. Se trata de información general, no de asesoramiento legal. Otras jurisdicciones tratan estos conceptos de forma distinta. Verifique el texto vigente y su situación con un abogado cualificado.
Preguntas frecuentes
Preguntas comunes sobre esta cláusula.